22°C
The bond on duties paid by new-car dealers has been reduced from 100 per cent to 20 per cent.
The announcement was made by the Minister of Finance and the Public Service, Fayval Williams, as she opened the 2025/26 Budget Debate in the House of Representatives yesterday (March 11).
Williams said the decision followed requests from stakeholders in the new-car dealership industry.
“They said that a 100 per cent bond on the duties they pay ties up too much of their capital. Jamaica imported some 50,786 motor vehicles worth $81 billion in 2022, and if you look at the duties, they are between 67 per cent to about 88 per cent of the value.
“If you assume the lowest duty, you can see that the capital tied up against the duties is significant. We listened to the industry and now, instead of a 100 per cent bond against the duty, we have reduced that to 20 per cent,” she said.
The Finance Minister noted that the reduction will be beneficial to the country, as it will free up capital to expand existing businesses, invest in other ventures, hire more people and contribute to overall economic growth.
“That was not a call on the Budget; that was not a tax incentive,” she pointed out.
“That represents this government listening and understanding the
hurdles in the way of businesses and taking steps to reduce or eliminate those hurdles,” the minister said.
Source
Related Articles
